FinCEN Updates Beneficial Ownership Reporting Requirements: What U.S. and Foreign Companies Need to Know
The Financial Crimes Enforcement Network (FinCEN) has issued an interim final rule that removes the requirement for U.S. companies and U.S. persons to report Beneficial Ownership Information (BOI) under the Corporate Transparency Act. This decision, announced in alignment with the U.S. Department of the Treasury’s March 2, 2025, update, represents a significant shift in reporting obligations for domestic businesses.
What This Means for U.S. Companies and Individuals
Effective immediately, U.S. companies and U.S. persons are no longer required to submit BOI reports to FinCEN. This change reduces the regulatory burden on domestic businesses while maintaining transparency measures for foreign entities operating in the U.S.
New BOI Reporting Deadlines for Foreign Entities
While U.S.-based entities are exempt from reporting, foreign companies that meet the definition of a “reporting company” must still comply with BOI filing requirements. However, these entities will not be required to disclose U.S. persons as beneficial owners.
The updated deadlines for foreign reporting companies are as follows:
- Entities registered before the rule’s publication: Must file BOI reports within 30 days of the interim final rule’s publication date.
- Entities registered on or after the rule’s publication: Must file an initial BOI report within 30 calendar days of receiving notice that their registration is effective.
Staying Compliant
These updates mark an important regulatory shift, particularly for businesses with international ties. Companies should review their reporting obligations carefully to ensure compliance with the new framework.
For more details and official guidance, visit FinCEN’s announcement.
